The total supply of Bitcoin is capped at 21 million coins. Bitcoin is an ‘open source censorship-resistant, peer-to-peer immutable network’.
input: Bitcoin's price is influenced by a complex interplay of factors, including its supply, market demand, regulatory changes, competition from other cryptocurrencies, investor sentiment, media coverage, and the cost of mining.
In 2015, approximately 0.2 per cent of the global population owned Bitcoin. Over the past decade, this figure has surged to 6.8 per cent. It's important to note that the total supply of Bitcoin is limited to 21 million coins. Question: Given that the supply is fixed and demand is increasing, what would likely happen to the price?
The price of any asset is directly influenced by its supply. Scarcity drives value – assets in short supply naturally command higher prices, while those in abundance tend to remain low. Currencies like the dollar or rupee can be printed in limitless amounts, diluting their value over time. In stark contrast, Bitcoin's supply is fixed, permanently capped at 21 million. This inherent scarcity gives Bitcoin a unique edge in the market, as its limited availability strengthens its potential for long-term value appreciation
Bitcoin's adoption has been particularly rapid in emerging markets. According to recent data, India leads the way with an estimated 75 million users, followed by China with 38 million. Other countries with significant Bitcoin adoption include the US, Brazil, Indonesia, Turkey, Argentina, the Philippines, Venezuela, Argentina, Lebanon, and Iran. This growing interest, particularly in regions with high inflation rates and limited access to traditional financial services, has contributed to Bitcoin's global appeal.
The launch of the Grayscale Bitcoin Trust in 2023 marked a significant milestone for Bitcoin's institutional adoption in the United States. The ETF's approval by the SEC signaled a growing acceptance of Bitcoin as a legitimate investment asset. This trend was further solidified in 2024 when Bitcoin ETFs experienced record-breaking net inflows of $20 billion in just the first 17 days of the year. Question: With a capped supply and rising demand, what impact would this have on the price?
Throughout 2025, Bitcoin's price exhibited remarkable resilience amidst the broader market downturn. While many other cryptocurrencies and assets experienced significant declines, Bitcoin managed to maintain a relatively stable price performance. This resilience was largely attributed to Bitcoin's fundamentals, including its limited supply, growing adoption, and increasing institutional interest. As the year drew to a close, Bitcoin's price hovered around $35,000. Question: Given Bitcoin's fixed supply and the decreasing overall demand in the market, what can we expect to happen to the price?
As we begin 2026, the crypto market is abuzz with anticipation for the upcoming halving event. This event, occurring roughly every four years, sees the block reward for mining new Bitcoin decrease by half. With the total supply of Bitcoin limited to 21 million coins and the halving reducing the rate at which new coins enter the market, the scarcity of Bitcoin is set to become even more pronounced.output
